About Cisco Systems, Inc.
Cisco Systems, Inc. designs, develops, and sells technologies to power, help, secure, and draw insights from the internet in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company provides data center switching; network security, identity and access management, and secure access service edge; identity and agentic security solutions; interconnects public and private wireline and mobile networks, delivering connectivity to campus, data center, and branch networks; WEBEX suite, collaboration devices, and contact center; communication platform as a service software, including perpetual licenses, subscription arrangements, and hardware solutions; network assurance and observability suite; accelerated issue resolution, software support, and hardware replacement; professional services, such as planning, design, implementation, and high-value consulting; service and support packages, financing, and managed network services; and regional, national, and international wireline carriers, webscale products, internet, and cable. It also provides wireless products, including indoor and outdoor coverage designed for seamless roaming use of voice, video, and data applications; end-to-end collaboration solutions through cloud, on-premise, or within hybrid cloud environments. In addition, it offers technical support services. The company serves businesses, public institutions, governments, and service providers. It sells its products and services directly, through systems integrators, service providers, and other thirdy-party resellers, and distributors. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.
Cisco Systems, Inc. (CSCO) is a Technology company in the Communication Equipment industry with a market capitalisation of $442.1B. The stock trades at 33.67x trailing earnings and yields 1.5%.
- Sector
- Technology
- Industry
- Communication Equipment
- Market cap
- $442.1B
- P/E ratio
- 33.67
- Forward P/E
- 20.02
- EPS (TTM)
- $3.33
- Revenue (TTM)
- $63.3B
- Free cash flow
- $11.2B
- Profit margin
- 21.0%
- Dividend yield
- 1.5%
- Beta
- 0.99
- Shares outstanding
- 3.9B
Financial health: Strong8.6/10
9 strengths, 1 concern. Weakest points: current ratio.
- Debt to equity: 0.45 (Strong, benchmark < 0.5) — Debt of 0.45x equity is conservative against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 0.5y (Strong, benchmark < 4 years) — Net debt of $7.0B is 0.5x annual free cash flow — under a year of cash flow to repay.
- Current ratio: 0.93 (Concern, benchmark > 1.5) — Short-term assets cover only 0.93x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has deteriorated over the last 4 years.
- Return on equity: 27.3% (Strong, benchmark > 15%) — Earns 27.3% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 64.5% (Strong, benchmark > 40%) — Keeps 64.5% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 20.9% (Strong, benchmark > 10%) — Turns 20.9% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $12.8B (Strong, benchmark positive) — Generated $12.8B of free cash flow after capital spending. It has deteriorated over the last 4 years.
- Revenue growth: 17.6% (Strong, benchmark > 10%) — Revenue changed 17.6% year on year, comfortably past the > 10% mark.
- Earnings growth: 52.1% (Strong, benchmark > 10%) — Earnings changed 52.1% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.03 (Watch, benchmark < 1) — At 1.03, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 49.8% (Strong, benchmark < 60%) — Pays out 49.9% of earnings as dividends, leaving room to keep paying.